Kazakhstan

OECD Review of Agricultural Policies: Kazakhstan 2013

Greater investment in transport infrastructure, agricultural research and food safety systems is needed to help Kazakhstan boost the long-term competitiveness of its farm sector and meet wider economic diversification objectives.

This report reviews progress in Kazakhstan's agricultural sector over the past two decades, since it transitioned from a planned to a market economy, and proposes policy reforms that will enable the country to take full advantage of its vast agricultural potential.

Facts about agriculture in Kazakhstan

Over 80% of the country’s total area is classified as agricultural land, including almost 70% occupied by pasture. Arable land constitutes less than 10% of the country’s total land area, but its availability per inhabitant (1.5 hectares) is the second highest in the world after Australia (2.1 hectares).

Agriculture contributed 5% of Kazakhstan's GDP in 2011 and 26% of its employment.

Government support to agriculture in Kazakhstan over the 2009-11 period, measured by the OECD Producer Support Estimate, was KZT 200 billion (USD 1.36 billion) per year. This represents an average 11% of farmers’ gross receipts, which is below the average for OECD economies.

After the dissolution of the USSR in 1991, agriculture in Kazakhstan experienced a difficult transition from a planned to a market economy. A gradual recovery began in the early 2000s, followed by a rise in Kazakhstan’s total trade in agro-food products in the second half of that decade, when it became one of the world’s top grain exporters. (See graphic and data on right)